Time TechnoplastQ1 FY27
Time Technoplast Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹185P/E: 18.9Market Cap: ₹9.3K CrSector: Industrial Products
Management growth scorecard
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0 of 0 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
- →Volume growth target: Above 15% annually over the next 3-4 years.
- →Sales distribution across quarters: 22% in Q1, 24% in Q2, 26% in Q3, and 28% in Q4; about 45% sales in the first half and 55% in the second half.
- →Segment-wise growth:
- → - Composite products: 25%-30% growth expected, higher margin segment.
- → - PE pipes: 20%-25% growth, with 35%-40% sales in first half and 60%-65% in second half, peak in last quarter.
- → - Packaging: 11%-13% growth predicted.
- → - Other products: 10%-12% growth.
- →Overall, total revenue growth depends on raw material price stabilization, but volume growth remains robust.
- →Confirmed packaging orders for current calendar year around INR400 crores.
- →Capex planned: INR350 crores for FY27 to support growth and expansion.
- →Guidance unchanged for growth, margin, and PAT targets for next 3 years.
Margin guidance
- →Volume growth is expected to be above 15% annually, supporting sustained revenue increase.
- →EBITDA growth anticipated at 19% to 20%, driven by operational efficiencies, automation, cost savings in power, manpower, and finance costs.
- →PAT growth projected at 23% to 24%, reflecting improved margins and debt reduction.
- →Capex of around INR 350 crores planned for FY27, focused on capacity expansion, automation, and consolidation, with normal capex stabilizing at INR 200-250 crores thereafter.
- →Target to improve ROCE by 1.75% annually, reaching 24% in 3 years (from 19% in March 2026).
- →Growth driven by key segments: composite products (25-30%), PE pipes (20-25%), packaging (11-13%), and others (10-12%).
- →Overseas business (35% of revenue) expected to continue robust growth despite global uncertainties.
- →Company committed to fulfilling growth, margin, and PAT guidance for next 3 years.
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Fundraise plans
- →No specific new fundraising through debt or equity is mentioned currently.
- →The company is mostly debt-free overall, with some country-wise borrowing and non-fund-based bank guarantees continuing.
- →Cost of funds is around 8.5% in India and 6.5% overseas, with 70% borrowings in India and 30% overseas.
- →The company has unutilized QIP proceeds of INR342 crores kept in fixed deposits earning interest.
- →Management is exploring deployment options for surplus funds, including possible inorganic growth or strategic investments.
- →There is a mention of potential share buyback from FY27 onwards to enhance shareholder returns.
- →Capex plans of around INR350 crores for FY27 and normal capex of INR200-250 crores thereafter, funded from operations and existing resources.
- →Any future fundraising or investment will be discussed with the board and investors based on opportunities and market conditions.
Order book
- →The company has a robust order book of approximately INR 185 crores, reflecting strong demand momentum in the composite product segment (Page 3).
- →Confirmed packaging orders for the current calendar year stand at approximately INR 400 crores, covering both domestic and international markets (Page 3).
- →In the PE pipes segment, orders are in hand with confirmed demand expected to lead to more than 20% growth in the year, showing strong future sales visibility (Page 13).
- →The company expects good demand in August and September with 75% capacity utilization anticipated in the PE pipes business (Page 13).
Capex plans
- →Planned capex of INR 350 crores for FY27 focused on consolidation of products and units, brownfield expansion, and automation.
- →Post FY27, annual capex expected around INR 200-250 crores (including INR 100 crores maintenance) to support 15% growth.
- →New plant in Dhule (PE pipe) to start commercial production from Q2 FY27.
- →Expansion projects in Gujarat (Sanand), Odisha, Maharashtra (Chiplun), and overseas locations including Georgia (USA) and Saudi Arabia underway or planned.
- →Continued focus on green energy conversion, including solar power use, targeting INR 12 crores savings this year and INR 35 crores next year in power costs.
- →Acquisition strategy is cautious; current acquisition (Ebullient Packaging Pvt Ltd) under review pending war situation stabilization.
- →Exploring inorganic growth and higher ROCE investment opportunities; possibility of share buybacks also considered.
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